The Home Affordable Refinance Program (HARP) is designed specifically to help borrowers who may be ineligible for traditional refinancing due to a loss of home value or because they have little or no equity. Like other refinancing options, with HARP you receive a completely new mortgage with new terms, interest rates and monthly payments. The new loan completely replaces your current mortgage and may lower your payment or move you into a more stable loan product, which could help improve your monthly financial situation.
The benefits of refinancing through HARP are:
– Lower your monthly mortgage payment
– Lower your mortgage interest rate
– Convert your adjustable-rate, interest-only, or balloon loan to a fixed-rate loan
– Reduce the term of your mortgage, build equity faster